They would receive equivalent money plus an interest rate better than a savings account (plus less volatility if they wanted to put $$ into stock market).   

Additionally, you’ll need to account for "depreciation recapture"—the depreciation deductions claimed during the rental period must be taxed.For example, consider a property purchased for $310,000, rented for six years, and then converted into a primary residence for two years before being sold for $510,000.

Created an account just to share...

Account Closed I think this is the key point. 

My calculations are based on 2 sets of numbers - the numbers the seller has provided, and my own calculations accounting for 5% for vacancy, 5% for repair, 5% for capex, 10% for property management and actual costs for property tax/insurance.I am trying to decide if this deal is worth pursuing or if I should walk away due to the premium on the homes.

Be sure to take property taxes into account too - there's a huge difference across the country. 

It will also make year end accounting and reconciliation so much easier and showing your assets vs liabilities for future lenders - whether traditional or hard money. 

No Bill Pay for the Cash Management accounts...

However I recommend speaking with your accountant/tax advisor before making this determination as this may differ depending on the individual and their objectives. 

Save yourself the time and energy and reach out to local accountants.